Tue April 25 02:01 pm 2023 in category Stock exchange releases
Inside information: Nokian Tyres announces new financial targets, aiming at EUR 2 billion net sales
Nokian Tyres plc Inside information April 25, 2023 at 2:01 p.m. EEST
Nokian Tyres’ Board of Directors has approved the company’s long-term financial targets for the next five years. The Board has also confirmed the previously announced non-financial targets.
Nokian Tyres’ long-term financial targets are:
• Growth: Net sales EUR 2 billion
• Profitability: Segments operating profit* at the level of 15%
• Capital structure: Net debt/Segments EBITDA* 1–2
Nokian Tyres’ dividend policy is unchanged. Nokian Tyres’ target is to pay a dividend of at least 50% of its net earnings.
“During the next five years we will concentrate on building the new Nokian Tyres and getting back to EUR 2 billion growth track with strong profits. As a new element, Nokian Tyres now has a capital structure target. Historically we wanted to be in a net cash position due to Russia risk exposure. Without Russia we are in the position to leverage our balance sheet”, says Jukka Moisio, Nokian Tyres’ President and CEO.
New capacity supporting growth
“Building the industry’s first zero CO₂ emission factory in Romania is an essential part of our journey towards EUR 2 billion net sales. Construction is about to begin, and commercial tire production is expected to start early 2025. At the same time, we add capacity in Finland and the US, and increase contract manufacturing”, Jukka Moisio continues.
“Increased capacity, new products and enhanced operational capabilities will support our development towards our new financial targets. Our aim is to continue as a good dividend payer, allowed by the strong balance sheet”, Jukka Moisio concludes.
Nokian Tyres has an excellent product portfolio and a strong innovation pipeline, and the expanding range of safe, sustainable, and high-performing tires meet the needs of evolving consumer expectations. Macro trends, such as an increasing number of new car models, rising SUV and CUV penetration and climate change mitigation, are driving demand for sustainably produced, innovative tires.
Nokian Tyres continues to set the industry benchmark on sustainability
Nokian Tyres has ambitious non-financial targets which are embedded throughout the core operations, keeping the company as a frontrunner in sustainability. The Board confirmed the previously announced non-financial targets, which focus on bringing new environmental and safety innovations to products, reducing CO₂ emissions in line with the Science Based Targets, further improving workplace safety, monitoring the sustainability of suppliers, and developing personnel wellbeing.
Nokian Tyres will, for example:
• Increase the share of recycled or renewable raw materials in tires to 50% by 2030
• Reduce CO₂ emissions from tire production (scope 1+2) by more than 50% by 2030, base year 2015
• Achieve net-zero greenhouse gas emission level by 2050 in line with the Net-Zero Standard of the Science Based Targets initiative
• Decrease accident frequency (LTIF) from 8.3 (2018) to 1.5 by 2025
• Audit 100% of significant high-risk suppliers by 2025
• Develop personnel wellbeing
All non-financial targets can be found at www.nokiantyres.com/company/sustainability/fundamentals/our-targets-and-achievements/
Capital Markets Update on April 25, 2023 at 3:00 p.m. EEST
Nokian Tyres will host a virtual Capital Markets Update 2023 for investors and analysts on April 25, 2023 at 3:00 p.m. EEST. The event focuses on the company’s long-term growth strategy and building the new Nokian Tyres. We will briefly cover the first quarter 2023 results at the event and will not organize a separate result call this time.
The live webcast can be followed at https://nokiantyres.videosync.fi/2023-cmd
The presentations will be held in English and the presentation material will be available at www.nokiantyres.com/company/investors/ir-services/ir-calendar/capital-markets-days/ at the beginning of the event. The recordings of the presentations will be added to the page after the event.
*As of January 1, 2023, Nokian Tyres will report as alternative non-IFRS figures Segments net sales and Segments operating profit excluding Russia and other items that are not indicative of Nokian Tyres’ underlying business performance.
Further information:
Jukka Moisio, President and CEO, tel: +358 10 401 7742
Teemu Kangas-Kärki, CFO, tel: +358 10 401 7750
Päivi Antola, SVP, Communications, Investor Relations and Brand, tel: +358 10 401 7327